Aerosonic Corp (AIM, Financial) filed Quarterly Report for the period ended 2012-04-27.
Aerosonic Corp has a market cap of $15 million; its shares were traded at around $3.75 with a P/E ratio of 39.8 and P/S ratio of 0.5.
Cost of sales for the first quarter of fiscal year 2013 decreased $500,000, or 10.0%, to $4,503,000 when compared to $5,003,000 for the first quarter of fiscal year 2012. Gross profit as a percentage of sales for the first quarter of fiscal year 2013 was 38.8% versus 25.4% for the first quarter of fiscal year 2012. The three-month comparative increase in gross profit as a percent of sales was primarily due to (a) increased variable margin due to the higher sales volume, (b) favorable pricing on certain customer orders, particularly in spares and repairs, and (c) the positive impact of quality improvements and investments in lean activities over the past two years. Offsetting this improvement were lower margins on mechanical and sensor products due primarily to the mix of products and customers. In addition, the gross profit percentage in the first quarter of fiscal 2012 was unfavorably impacted by higher contract loss provisions and costs associated with the closure of our Virginia facility.
We reported operating income during the first quarter of fiscal year 2013 of $720,000, or 9.8% of net sales, compared to operating loss of ($382,000), or 5.7% of net sales, in the prior year’s first quarter. This increase in operating income is primarily attributable to the increased net sales and improved gross margin percentage as described above, partially offset by the higher selling, general and administrative costs.
Our liquidity will depend on our ability to achieve budgeted operating results and to renew our Revolving Credit Line Note when it matures on June 27, 2012. Sufficient liquidity is necessary to, among other things, (i) satisfy working capital requirements, (ii) fulfill necessary capital spending, and (iii) meet our debt obligations in fiscal year 2013 and beyond. Although our three months ended April 27, 2012 cash flows from operations improved over the prior year, we continue to experience liquidity challenges because of a lack of sustained earnings through improved operating performance, continued demand for capital additions and increased debt repayment during fiscal year 2013 when compared to fiscal year 2012. Our failure to improve our operating results could have a material adverse effect on our liquidity and could require the implementation of curative measures, including raising capital, deferring planned capital expenditures and research and development efforts, reductions in force, reducing discretionary spending, and selling assets. There can be no assurance that our proposed plans and actions will be successful or that unforeseen circumstances will not require us to seek additional funding sources in the future or effectuate additional plans to conserve liquidity. In addition, there can be no assurance that in the event additional sources of funds are needed, they will be available on acceptable terms, if at all.
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Aerosonic Corp has a market cap of $15 million; its shares were traded at around $3.75 with a P/E ratio of 39.8 and P/S ratio of 0.5.
Highlight of Business Operations:
Net sales for the first quarter of fiscal year 2013 increased $652,000, or 9.7%, to $7,361,000 when compared to $6,709,000 for the first quarter of fiscal year 2012. During the first quarter of fiscal year 2013, the net sales increased from the prior year on sales of development services and spares, partially offset by decreased sales of mechanical products and repairs, while sales of sensor products were comparable. Our net sales continue to be impacted by the ongoing recession in the business jet and general aviation markets.Cost of sales for the first quarter of fiscal year 2013 decreased $500,000, or 10.0%, to $4,503,000 when compared to $5,003,000 for the first quarter of fiscal year 2012. Gross profit as a percentage of sales for the first quarter of fiscal year 2013 was 38.8% versus 25.4% for the first quarter of fiscal year 2012. The three-month comparative increase in gross profit as a percent of sales was primarily due to (a) increased variable margin due to the higher sales volume, (b) favorable pricing on certain customer orders, particularly in spares and repairs, and (c) the positive impact of quality improvements and investments in lean activities over the past two years. Offsetting this improvement were lower margins on mechanical and sensor products due primarily to the mix of products and customers. In addition, the gross profit percentage in the first quarter of fiscal 2012 was unfavorably impacted by higher contract loss provisions and costs associated with the closure of our Virginia facility.
We reported operating income during the first quarter of fiscal year 2013 of $720,000, or 9.8% of net sales, compared to operating loss of ($382,000), or 5.7% of net sales, in the prior year’s first quarter. This increase in operating income is primarily attributable to the increased net sales and improved gross margin percentage as described above, partially offset by the higher selling, general and administrative costs.
Our liquidity will depend on our ability to achieve budgeted operating results and to renew our Revolving Credit Line Note when it matures on June 27, 2012. Sufficient liquidity is necessary to, among other things, (i) satisfy working capital requirements, (ii) fulfill necessary capital spending, and (iii) meet our debt obligations in fiscal year 2013 and beyond. Although our three months ended April 27, 2012 cash flows from operations improved over the prior year, we continue to experience liquidity challenges because of a lack of sustained earnings through improved operating performance, continued demand for capital additions and increased debt repayment during fiscal year 2013 when compared to fiscal year 2012. Our failure to improve our operating results could have a material adverse effect on our liquidity and could require the implementation of curative measures, including raising capital, deferring planned capital expenditures and research and development efforts, reductions in force, reducing discretionary spending, and selling assets. There can be no assurance that our proposed plans and actions will be successful or that unforeseen circumstances will not require us to seek additional funding sources in the future or effectuate additional plans to conserve liquidity. In addition, there can be no assurance that in the event additional sources of funds are needed, they will be available on acceptable terms, if at all.
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